Mortgage rates have climbed to their highest levels in 21 years, according to data released by Freddie Mac on Thursday.
The 30-year fixed-rate mortgage averaged 7.09% over the week ending on Thursday, marking a significant increase from 6.96% the week prior, the data showed.
I bought my first house in 1983. It was a 9% mortgage rate. We bought the house for $33,000. It was on of those nice big ole houses with 1/3 of an acre of a yard in town. The payment was $330 if I remember correctly.
20 years ago the property valuation was significantly less than today. Couple that with wages staying pretty flat. Plus, the dollar is worth 66% of what it was in 2003. Therein is the squeeze.
Thanks Biden (Obama). To be fair, it's not like Biden is aware of mortgage rates... Biden is happy as long as Mommy Jill gives him his pudding cup before Matlock starts.
We refinanced under Trump to 2 point something. Now, this mess.
Paid off the mortgage yesterday following sale of our last rental property. Also removed the bank's interest from the title. Not planning to ever borrow again so a nice day.
I remember interest rates in the high teens during the Carter years; the internet says 16.63% in 1981, but I recall some folks telling me numbers like 18%. My first mortgage in 1987 was around 11.25%. We managed to refinance later to 7% or so. Woo Hoo! Another pernicious artifact of economy crippling inflation driven by out of control monetary policy. FJB.
Lemme ask the first two anon... geniuses... Did houses cost less in the 80s? They did? An order or two of magnitude less? Huh. Speaking of $33,000 (at least 500,000 today) is 10% of 33,000 more or less than 6% of 500,000? Yeah. The interest on a modern mortgage might be lower, but the actual costs? That's a 3,300 interest payment, vs 30,000. And the 30,000 is with 6% not even 7 or more. | To put it simply, by acting like 7% interest rates on houses that cost 15 times more than they did when you had your 10% interest rate are somehow....better or easier than paying your piddling little 10% on 1/15th the amount they're (the people that your comment implies are bitching about nothing) paying 7% interest on...well as the internet says: Tell us you're incapable of comprehending basic mathematics, or exercising a modicum of basic self-reflection... without telling us. | Once more: 10% of a smaller amount is generally less than 6% of a much much larger amount. Just like 10% of 100 is 10...and 6% of 1000 is 60. Smaller percentage, larger expense. Basic freaking math.
These kids today whining and crying and moaning about a 5% prime rate after buying houses they couldn't afford in the first place HAVE NO CLUE how far this can be taken.
"kids today" aren't buying houses, genius. That's the point. Fewer people under 50 own their own homes than at any point in the past 100+ years in America. It's similar around the world, but the most solid stats are from the US. "Kids" (the people paying your social security) don't own homes. They can't afford to. They also can't afford to have kids. So the only people having kids are people who don't give a fuck of they can afford them, aka blacks and browns of various types. | Jesus Christ it's amazing. Vox says MPAI, but really...MPAI. When the economic future of every successive generation has been progressively worse and more hopeless for almost 50 years...there's a problem. But you probably don't even have grandchildren or children, and if you do, you probably wouldn't piss on them if they were on fire, anon. So... bless your shriveled heart and brain, anon. Bless your heart.
I remember back in the 1980s when I was happy to refinance down to a 10% mortgage.
ReplyDeleteI bought my first house in 1983. It was a 9% mortgage rate. We bought the house for $33,000. It was on of those nice big ole houses with 1/3 of an acre of a yard in town. The payment was $330 if I remember correctly.
Delete7%? Make it 10%. No problem. Joe will be promising a Mortgage Load Forgiveness program soon.
ReplyDeleteHe's not buying VOTES though, that would be illegal.
20 years ago the property valuation was significantly less than today. Couple that with wages staying pretty flat. Plus, the dollar is worth 66% of what it was in 2003.
ReplyDeleteTherein is the squeeze.
Thanks Biden (Obama).
ReplyDeleteTo be fair, it's not like Biden is aware of mortgage rates...
Biden is happy as long as Mommy Jill gives him his pudding cup before Matlock starts.
We refinanced under Trump to 2 point something.
Now, this mess.
- sign me Disgusted
Paid off the mortgage yesterday following sale of our last rental property. Also removed the bank's interest from the title. Not planning to ever borrow again so a nice day.
ReplyDeleteI remember interest rates in the high teens during the Carter years; the internet says 16.63% in 1981, but I recall some folks telling me numbers like 18%. My first mortgage in 1987 was around 11.25%. We managed to refinance later to 7% or so. Woo Hoo! Another pernicious artifact of economy crippling inflation driven by out of control monetary policy. FJB.
ReplyDeleteLemme ask the first two anon... geniuses... Did houses cost less in the 80s? They did? An order or two of magnitude less? Huh.
ReplyDeleteSpeaking of $33,000 (at least 500,000 today) is 10% of 33,000 more or less than 6% of 500,000? Yeah. The interest on a modern mortgage might be lower, but the actual costs? That's a 3,300 interest payment, vs 30,000. And the 30,000 is with 6% not even 7 or more.
|
To put it simply, by acting like 7% interest rates on houses that cost 15 times more than they did when you had your 10% interest rate are somehow....better or easier than paying your piddling little 10% on 1/15th the amount they're (the people that your comment implies are bitching about nothing) paying 7% interest on...well as the internet says: Tell us you're incapable of comprehending basic mathematics, or exercising a modicum of basic self-reflection... without telling us.
|
Once more: 10% of a smaller amount is generally less than 6% of a much much larger amount. Just like 10% of 100 is 10...and 6% of 1000 is 60. Smaller percentage, larger expense. Basic freaking math.
And your point is?
DeleteThese kids today whining and crying and moaning about a 5% prime rate after buying houses they couldn't afford in the first place HAVE NO CLUE how far this can be taken.
"kids today" aren't buying houses, genius. That's the point. Fewer people under 50 own their own homes than at any point in the past 100+ years in America. It's similar around the world, but the most solid stats are from the US. "Kids" (the people paying your social security) don't own homes. They can't afford to. They also can't afford to have kids. So the only people having kids are people who don't give a fuck of they can afford them, aka blacks and browns of various types.
Delete|
Jesus Christ it's amazing. Vox says MPAI, but really...MPAI. When the economic future of every successive generation has been progressively worse and more hopeless for almost 50 years...there's a problem. But you probably don't even have grandchildren or children, and if you do, you probably wouldn't piss on them if they were on fire, anon. So... bless your shriveled heart and brain, anon. Bless your heart.
why do liberal trolls always have to throw out insults?
DeleteFun fact - the last two interest rate cycles ran about 40 years in each direction. Strap in.
ReplyDeleteMartyB
Yup, two and a half years ago rates were as low as 2.4 I believe and gas was around 2.86 a gallon.
ReplyDeleteI was paying 12% for a while, long ago.
ReplyDeleteSo, house prices should be dropping any minute now. Wait for it...wait for it...
ReplyDelete